Accounting conservatism and banking expertise on board of directors

  • Tri Tri Nguyen
  • Chau Minh DuongEmail author
  • Nguyet Thi Minh Nguyen
  • Hung Quang Bui
Original Research


Previous studies show mixed evidence of the role of banking expertise on the board of directors on accounting conservatism. In this paper, we add to this growing literature by providing an innovative way to measure banking expertise based on life-time working history in banks of all individual directors on the board. We find that accounting conservatism is negatively affected by banking expertise on the board. Also, the results indicate that banking expertise on the board has a more pronounced impact on accounting conservatism when firms have high bankruptcy risk and when firms have high financial leverage. The evidence has some implications for boards of directors.


Accounting conservatism Banking expertise Boards of directors 

JEL Classification

G34 M41 



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Authors and Affiliations

  1. 1.University of BrightonBrightonUK
  2. 2.University of Economics Ho Chi Minh CityHo Chi Minh CityVietnam
  3. 3.University of East LondonLondonUK
  4. 4.Ho Chi Minh City Open UniversityHo Chi Minh CityVietnam

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